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1. The financial analyst for Sportif, Inc. has compiled sales and disbursement estimates for the coming months of January through May. Historically, 75 percent of sales are for cash with the remaining 25 percent collected in the following month. The ending cash balance in January is $3,000. Prepare a cash budget for the months of February through May to answer five related multiple-choice questions. The total cash receipts for February are (See Table 3.1) Table 3.1 Month January February March April May Sportif, Inc. Sales $5,000 6,000 10,000 10,000 10,000 Disbursements $6,000 $7,000 $4,000 $5,000 $5,000 a. $5,750. b. $7,500 c. $9,250. d. $10,000 2. The net cash flow for February is See Table 3.1) Table 3.1 Month January February March April May Sportif, Inc. Sales $5,000 6,000 10,000 10,000 10,000 Disbursements $6,000 $7,000 $4,000 $8,000 $5,000 a. -$1,000 b.-$1,250. c. $5,750. d. $750. 3. The ending cash balance for February is See Table 3.1) Table 3.1 Month January February March April Sportif, Inc. Sales $ 5,000 6,000 10,000 10,000 10,000 Disbursements $6,000 $7,000 $4,000 $5,000 $5,000 May a $ 750. b. $1,750. c. $2,500. d. -$1,000. 4. The total cash receipts for April are (See Table 3.1) Table 3.1 Month January February March April May Sportif, Inc. Sales $ 5,000 6,000 10,000 10,000 10,000 Disbursements $6,000 $7,000 $4,000 $5,000 $5,000 a. $9,250 b. $5,000 c. $7,500 d. $10,000 5. At the end of May, the firm has an ending cash balance of (See Table 3.1) Table 3.1 Month January February March April May Sportif, Inc. Sales $5,000 6,000 10,000 10,000 10,000 Disbursements $6,000 3,000 $4,000 $5,000 $5,000 a. $12,000 b. $16,750 c. $9,000 d. $14,250

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